Europe

GlobalCapital's handy table of recently priced corporate bond issues, with links to the stories about them.

The European Securities and Markets Authority wants more convergence between central counterparties on how they comply with margin and collateral requirements.

As plans for the bailout of Banca Monte dei Paschi take shape, attention is turning to how its shares could trade once the recapitalisation has taken place. The financial details are not clear yet, but it is likely to involve the creation of €5bn or more of new equity, held by the government and former owners of subordinated bonds.

The state bail-out of Banca Monte dei Paschi di Siena, announced during the night, has brought relief to the Italian financial system — at last, there is a plan for dealing with Italy’s weakest large bank. But there are already questions about whether it undermines Europe’s policy on dealing with bank failures.

China and Russia are forging ahead with closer financial market ties, with the Moscow Exchange (Moex) and Shanghai Stock Exchange (SSE) looking to facilitate two-way investments between the countries. This comes as the Russian ministry of finance is still finalising plans for the first RMB-denominated bond to be issued in Russia.

Eurex, the derivatives exchange of Deutsche Börse, has hired Lee Bartholomew and Zubin Ramdarshan to work on research and development for new derivatives products.

While Euro PP volumes have dipped this year, the number of deals has been about the same as 2015. While the nascent market finds its place in the corporate finance landscape, 2016 was either a heart-warming, or heart-wrenching year for Euro PP.

It was another quiet year for issuance on the London Stock Exchange’s Order Book for Retail Bonds, while unfortunate bondholders of oil and gas developer Enquest, which listed its issues on ORB, had to deal with a restructuring. But investors on the platform have stood firm during the tough times, and are still ready to take down new issues.

Shares in Elis Services, the French bed linen and laundry company, gained 8.6% on Thursday after it announced on Wednesday night that it was buying Indusal of Spain and Lavebras of Brazil.

At around €10bn Canadian banks are expected to issue the highest net volume of euro-denominated covered bonds in 2017. And, given high dollar redemptions, a favourable cross-currency swap and an active mortgage market, supply could even beat expectations.

Fitch on Thursday left a cautionary message on the high yield market's prospects for next year: issuance will be tame, especially from single-B borrowers, and there are several reasons for that.

A private sector recapitalisation of the ailing Italian bank, Monte dei Paschi di Siena, is looking increasingly unlikely, following the limited take-up for the liability management exercise and low interest in the equity raising, meaning that state-led intervention will now be needed.